I have the FSAE chassis team captain from my alma mater starting for me in June doing piping engineering. The difference between this guy and you is that he hasn't worked in non-related jobs for 2 years. Still, you don't have to give up on finding an engineering job quite yet!
I am sure you're competent, but I would be nervous to hire you as a "cold" resume coming across my desk. However, if I knew you personally or someone recommended you, I might give you a chance. Try to make contact with some managers at companies you might be interested in and build a relationship with them. Power is a pretty hot field now. Oil & gas, too. But, I think meeting people and getting a foot in the door is more important than finding a hot industry. I work with a guy who called my boss on and off for FOUR years until he got a job with our company. Job hunting really is about who you know. I have another guy starting Monday who is not even a degreed engineer, but did automotive design for 15 years before getting downsized. Another engineer here recommended him, and we're giving him a chance. I even once interviewed a woman whose daughter was the dental hygenist of a project manager with my company, so just getting out there and telling people you're looking for a job can be very important.
Of course, taking some CAD classes or even grad level engineering classes to update your skills is a great idea, too. When you go to an interview and tell people you want to be an engineer, but can't point to anything tangible you have done in the past two years to work towards that goal, it's a strike against you. It's just like if I go to my boss and say I should be promoted and all I've done was maintain the status quo for two years. I have to give him a reason to promote me.
Good luck - Don't underestimate yourself & don't give up!